Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Sunday, August 26, 2012

South Korea's Hanwha Signs Deal To Buy Insolvent Q-Cells

Per www.globalinsolvency.com:

Mon., August 27, 2012

South Korea's Hanwha Corp
intends to buy solar Group Q-Cells, the insolvent German group said in a
statement on Sunday, Reuters reported. Hanwha and Q-Cells' insolvency
administrator Henning Schorisch had signed a contract, which needs to be
approved by a creditors' meeting to be held on Aug. 29. Q-Cells, once
the world's largest maker of solar cells, said Hanwha would take on
liabilities, which amount to "the low hundreds of millions." In addition
it would pay a "medium double-digit million-euro range" in cash,"
Q-cells said in the statement. The deal was excluding convertible bonds
issued and guaranteed by Q-Cells. Q-Cells, which employs about 2,300
people, filed for insolvency in April and became the most prominent
victim so far in an industry shakeout that has already claimed some of
its rivals in Germany and the United States, including Solon, Solar
Millennium and Solyndra. After going public in 2005, Q-Cells went on to
become the world's largest maker of solar cells but lost that title in
2009, suffering from low-cost competition from Asia, pricing pressure
and excess supply of solar cells in the market. Shares in the company,
headquartered in Bitterfeld-Wolfen, once the hub of the former East
Germany's ailing chemicals industry, were worth almost 84 euros ($110)
at their peak in late 2007. The stock closed at 0.17 euro on Friday, up
32.8 percent on the day, as traders pointed to market chatter of a final
deal with Hanwha. Hanwha in late June said it was conducting due
diligence on Q-Cells.